A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended June 28, so let’s proceed with the discussion of the hedge fund sentiment on CorePoint Lodging Inc. (NYSE:CPLG).
CorePoint Lodging Inc. (NYSE:CPLG) was in 8 hedge funds' portfolios at the end of June. CPLG shareholders have witnessed a decrease in hedge fund interest in recent months. There were 13 hedge funds in our database with CPLG holdings at the end of the previous quarter. Our calculations also showed that CPLG isn't among the 30 most popular stocks among hedge funds (see the video below). Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
In the eyes of most traders, hedge funds are assumed to be worthless, outdated financial vehicles of yesteryear. While there are over 8000 funds trading at present, Our researchers hone in on the crème de la crème of this club, approximately 750 funds. These hedge fund managers command bulk of the hedge fund industry's total asset base, and by watching their first-class investments, Insider Monkey has come up with several investment strategies that have historically exceeded Mr. Market. Insider Monkey's flagship hedge fund strategy outrun the S&P 500 index by around 5 percentage points per year since its inception in May 2014. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 25.7% since February 2017 (through September 30th) even though the market was up more than 33% during the same period. We just shared a list of 10 short targets in our latest quarterly update .
Unlike former hedge manager, Dr. Steve Sjuggerud, who is convinced Dow will soar past 40000, our long-short investment strategy doesn't rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. Let's review the new hedge fund action encompassing CorePoint Lodging Inc. (NYSE:CPLG).
What does smart money think about CorePoint Lodging Inc. (NYSE:CPLG)?
At the end of the second quarter, a total of 8 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -38% from the first quarter of 2019. On the other hand, there were a total of 20 hedge funds with a bullish position in CPLG a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Renaissance Technologies was the largest shareholder of CorePoint Lodging Inc. (NYSE:CPLG), with a stake worth $4.8 million reported as of the end of March. Trailing Renaissance Technologies was Millennium Management, which amassed a stake valued at $3.7 million. D E Shaw, Moab Capital Partners, and AQR Capital Management were also very fond of the stock, giving the stock large weights in their portfolios.
Seeing as CorePoint Lodging Inc. (NYSE:CPLG) has faced bearish sentiment from hedge fund managers, it's easy to see that there is a sect of fund managers who sold off their entire stakes last quarter. Interestingly, Derek C. Schrier's Indaba Capital Management cut the biggest stake of the "upper crust" of funds tracked by Insider Monkey, valued at about $14.4 million in stock. Michael Burry's fund, Scion Asset Management, also cut its stock, about $7.3 million worth. These moves are intriguing to say the least, as total hedge fund interest fell by 5 funds last quarter.
Let's now review hedge fund activity in other stocks similar to CorePoint Lodging Inc. (NYSE:CPLG). These stocks are AngioDynamics, Inc. (NASDAQ:ANGO), SunCoke Energy, Inc (NYSE:SXC), Realogy Holdings Corp (NYSE:RLGY), and Community Trust Bancorp, Inc. (NASDAQ:CTBI). This group of stocks' market caps are similar to CPLG's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ANGO,12,37423,-1 SXC,20,137167,-1 RLGY,24,299862,-4 CTBI,6,19594,-2 Average,15.5,123512,-2 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.5 hedge funds with bullish positions and the average amount invested in these stocks was $124 million. That figure was $16 million in CPLG's case. Realogy Holdings Corp (NYSE:RLGY) is the most popular stock in this table. On the other hand Community Trust Bancorp, Inc. (NASDAQ:CTBI) is the least popular one with only 6 bullish hedge fund positions. CorePoint Lodging Inc. (NYSE:CPLG) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. Unfortunately CPLG wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); CPLG investors were disappointed as the stock returned -16.8% during the third quarter and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as many of these stocks already outperformed the market so far in 2019.
Disclosure: None. This article was originally published at Insider Monkey.